Have you heard of Google's pricing tool on The Buy on Google? If not, hear us out.
Google has introduced an automated pricing solution that allows merchants to manage their product pricing. The repricing tool helps to adjust merchants prices to compete with other merchants driving sales on Ecommerce.
In this blog post, we will explain what Google Shopping Repricing is and why you should use it. Then, we will understand the advantages of using a repricing tool and see quick and actionable tips for your Ecommerce store.
Let's dive in.
What is Buy on Google Repricing?
Google repricing is an automated system to reprice your products based on price rules and price floors that you have determined.
Repricing tools allow you to see whether or not you offer the best price on the platform. So, it's a good way to observe the competitors in Ecommerce. By observing competitors' prices, you can price your products competitively and increase your sales! Or if you want, you can set different pricing strategies for each group of your products as you wish!
To learn more about it, visit here.
Repricing tools sound great but why should you use them in the first place?
Let's explain the reasons for using an automated repricing tool and see the benefits of it!
Why Should You Use a Repricing Tool?
As an Ecommerce merchant, you know that there are thousands of online stores and hundreds are being created day by day. Giving an exact number of online stores is not possible. But to be clear, statistics show that in 2021, retail Ecommerce sales amounted to approximately 4.9 trillion U.S. dollars worldwide. This figure is forecast to grow by 50% over the next four years, reaching about 7.4 trillion dollars by 2025.
These high numbers show that Ecommerce is growing fast and it's based on sales. To get high sales, it might be a good idea to compete on price. This is because 65% of consumers check for price comparisons while they're physically shopping in a store. So, it will be wise to think ahead while pricing your products.
Setting an effective pricing strategy can be an ideal way to keep target customers in your store. By using an automated pricing system you can set the right prices.
Pricing tools work by tracking other merchants' prices. After observing different prices on the market, merchants can set different prices. For example, if you keep your eyes on your competitors and understand their pricing strategies you will be one step closer to success. This is because by using a pricing tool you will take informed decisions backed by data. Automated pricing tools can consistently track your competitors' price information when a competitor has raised or lowered the price across different channels.
By using that information, you will have the opportunity to set competitive dynamic prices in your store and generate higher sales!
Benefits of Using a Repricing Tool
Pricing tool helps merchants to determine pricing options that best reflect their product's or service's value. It gives online stores opportunities to grow, optimize their pricing strategies and maximize profit margins.
Let's see some benefits of using a pricing tool.
- See All Price Changes. When there is a price change the pricing software will automatically inform you. There is no chance to miss a discount when other merchants do seasonal sales. Seasonal sales are very important in the retail fiscal calendar. This is because the surge in customer traffic and conversion to online stores is at its climax. To understand sales seasonality better you can check here, to see drastic price changes in 2021.
- Minimize Costs. Tracking competitors' prices manually is time-consuming and not effective at all. Manual trackers commonly create an excel sheet by adding all different prices of other merchants. It's a lot of time-consuming and very possible to make mistakes. Price tracking software is more effective, and economical than manual tracking.
- Stay Competitive. Having the right price can make a difference when it comes to selling a great product or service. But determining how much to charge can be overwhelming since there are lots of factors to consider. Working with a pricing tool can be your guide. By understanding the live data sets about competing prices on the market you can stay competitive.
- Make More Accurate Forecasts. Data gathered by pricing tools is not only about making informed decisions, it can play an important role while planning for the future. By using an automated pricing tool you can focus on data analysis and this will result in making more accurate forecasts. And you will have opportunities to better shape the future of your business.
Quick Tips for Repricing Tools
- Keep your prices flexible, pricing is an ongoing process. Keep monitoring your competitors' prices and set your prices accordingly.
- Set price rules. You can set different price rules for different products with the pricing engine. For example, for your best-performing products you can set the rule by ''10 dollars higher than the most expensive''. Your product prices will be adjusted according to the rules you have determined.
- Track out-of-stock information. You can charge different prices by observing competitors' stock availability. Imagine that competitors are out-of-stock and you are the only store selling that product. Now you can set higher prices and maximize your profit margins.